Thursday, February 20, 2014

Virnetx v Apple 2013 Royalty Estimates

Apple Damages January 1, 2013 - December 31, 2013
Date 3/31/2013 6/30/2013 9/28/2013 12/31/2013
Total Revenue Per Unit
iPhone  $     22,955,000,000  $   18,154,000,000  $  19,510,000,000  $    32,498,000,000
iPad          6,374,000,000        8,746,000,000        6,186,000,000        11,468,000,000
iPod             962,000,000        4,569,000,000           573,000,000            973,000,000
Americas Revenue % 32.23% 40.78% 37.20% 34.90%
Americas Revenue 3/31/2013 6/30/2013 9/28/2013 12/31/2013
iPhone  $      7,397,740,064  $     7,403,345,412  $    7,258,457,248  $    11,340,500,816
iPad          2,054,157,925        3,566,688,277        2,301,425,758         4,001,872,834
iPod             310,025,090        1,863,274,495           213,177,653            339,538,042
Total  $      9,761,923,079  $   12,833,308,184  $    9,773,060,659  $    15,681,911,692
Estimate US Revenue 90%          8,785,730,771       11,549,977,366        8,795,754,593        14,113,720,523
Smallest Saleable   $      7,028,584,617  $     9,239,981,893  $    7,036,603,674  $    11,290,976,418
Unit per Final Judgment
Excluded 20% of Devices Total =  $    34,596,146,602
Page 24
Virnetx .5% Royalty Owed  $           35,142,923  $         46,199,909  $         35,183,018  $          56,454,882
(Jury Verdict %)
Total =  $    172,980,733.01
Virnetx 1% Royalty Owed  $           70,285,846  $         92,399,819  $         70,366,037  $        112,909,764
Total =  $    345,961,466.02
Virnetx 1.52 Royalty  $         106,834,486  $       140,447,725  $       106,956,376  $        171,622,842
(VHC Asking For)
Total =  $    525,861,428.35
Assumptions:
  Apple does not have a non-infringing workaround
  90% US Estimate is close to being accurate, this number could be revised in either direction.
  The majority of the money is from products not included in the first trial.
  Virnetx is trying to collect this money in post-verdict motions not yet ruled on proving
  new devices are the same as already proven infringing devices .
  
Conclusions:
  
  There is a substantial amount of money at stake for both parties.  Even at the .5% rate
  would yield a substantial stream of revenue to Virnetx.  
  All numbers could be subject to treble damages if Virnetx proves willful infringement at
  the pending 2015 trial.

5 comments:

  1. Great Post..soon we can hear from judge with 1.5%.

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  2. This comment has been removed by the author.

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  3. "Apple does not have a non-infringing workaround" "There is a substantial of money at stake for both parties. Even at the .5% rate" <--- Exactly why "colorably different" ruling much more important than RR.

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    Replies
    1. I agree. I explain this concept on an almost daily basis.

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  4. Under assumptions, I meant to write that I did not include Mac computers. In the court documents Virnetx calculated using the $29 FaceTime upgrade as the saleable unit, instead of the total computer price. I felt the numbers would be immaterial. My Mac contribution totaled about $1.9M.

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